Lodsys Still Alive, and Apparently Doing Well

Last May, we heard rumblings of a company that started threatening developers with lawsuits over patent infringement for technology related to in-app purchases. Lodsys, a company that does nothing more than collect patents and licensing fees associated with them (AKA: patent trolls), stirred up a lot of hubbub over their attack on independent iOS developers.

Shortly after Lodsys sent out its threats, Apple stepped in to defend developers, claiming that Lodsys has no basis for its claim because app makers are protected under their license umbrella. The patent licensing company didn’t heed Apple’s warning and went ahead with a lawsuit against app developers anyway. Last June, Google joined Apple in the fight against Lodsys, but the potential outcome was very unclear due to the no-challenge clause that the patent company likely had in place.

Yesterday, Lodsys released an update on its blog regarding “Licensing Momentum” and the “Status of Apple Intervention.” Apparently, the licensing company got what it wanted from at least 150 companies and feels confident that Apple won’t win in the lawsuit.

From Lodsys’ blog:

“As of October 8, 2012, there are greater than 150 companies which obtained the rights to use the Lodsys Group patent portfolio, and more than 4 out of 5 of these companies have entered into licenses outside of the litigation process. These companies have realized significant savings by taking advantage of lower licensing rates.”

The licensing company stated that the U.S. Patent and Trademark upheld its claim of ownership of the patent regarding in-app purchases and free-to-paid application upgrades.

From Lodsys’ blog:

‘We have every confidence that all claims will ultimately be confirmed through this lengthy process. In-app purchase features and free-to-paid upgrades will be a part of the litigation process that is now swiftly moving forward.”

The company also made a statement regarding Apple’s participation in the litigation process. The Court will allow Apple to make the case that their license rights extend to these iOS developers. The trial, which includes other unnamed groups, is scheduled for trail in 2013.

From Lodsys’ blog:

“This is irrespective of Apple’s unilateral declarations to the contrary and their insistence that the documents that underlie the issue remain shrouded in secrecy to prevent application developers and others from determining the scope of Apple’s license for themselves.”

It looks like the Court won’t see this lawsuit for at least another four months. In the mean time, it seems that Lodsys will continue to pursue licensing fees from iOS developers until the company is told not to.

[via MacRumors]

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About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik

  • http://twitter.com/HankChill Henry Chilcott

    Patent trolls need to die in a fire.